Why Tax Hikes Aren’t The Answer To The Deficit Or Debt In Two Overly Simplistic Charts
Barack Obama wants $1.6 TRILLION in new revenue over the next ten years. Now that’s a lot of money…unless you’re talking about the federal deficit and/or the national debt. Unfortunately, those are exactly the things we’re talking about.
So, how much does this new revenue get you? Not much when this years budget deficit will be between $900 billion (assuming sequestration happens and the stars align) and…God knows how much. We’re not off to a good start.
Since the total tax hike is over 10 years, you can only count $160 billion against this year’s deficit.
Oh my. That’s not much, is it?
Well, it’s far less compared to the $16 TRILLION + and growing federal debt.
Now that assumes the WHOLE tax hike that will only come in over 10 years AND that we stop adding debt TODAY. Considering Obama is looking for a hike in the debt ceiling and new spending….yeah.
Of course all of this assumes that a tax hike has no impact on how people manage their money or on economic growth not slowing further. Oh and spending staying at current levels. None of those things will happen. So this drop in the bucket of revenue won’t do anything about our deficit or debt (except likely make them worse).
Why, it”s almost as if all Obama cares about is wealth redistribution and destroying the GOP. Heck of a job America!
The only solution to our fiscal mess is a combination of spending cuts, entitlement reform and massive economic growth. Anything other than that…..